You may already know what details are included in your credit history, that determine your credit score. But you’ll be even more surprised to learn what personal information doesn’t factor into this rating at all.
What is your credit score?
Your credit score and what can affect it, is made up of information related to your credit history and report. This information is used to generate a credit score which can range, in most cases, between 0-1200.
Because only information recorded in your credit history can be used to generate a credit score, this means that these factors following, play no meaningful role in determining whether you have good or bad credit.
What does not affect your credit score
- Race, religion, or ethnicity
- Political affiliations
- Medical history or health information
- Criminal records
- Income or salary details
- Bank account balances
- Information about spouse or family members (unless they are joint account holders)
- Utility or phone bill payments (unless they are in default)
- Rental payment history (unless reported as a default)
By accessing the data contained in your credit report, credit bureaus craft your score. If you can meet all of your financial obligations on time and successfully apply for new forms of credit, then you will naturally construct a solid rating or lift up an unsatisfactory one. However, neglecting payments or defaulting them over again may result in poor outcomes when it comes to obtaining a good standing with creditors.
What does affect your credit score
You may be aware of the consequences that multiple credit checks in a short amount of time can have on your credit score. This is because when banks and other financial institutions check your credit, they take it as an indicator that you are looking for more money than usual; this implies to them that you could potentially miss payments or default. Other information that is included on your credit report includes:
Personal Information
- Name, date of birth, gender
- Current and previous addresses
- Driver’s license number
- Employment information
Credit Account Information
- Types of credit accounts (e.g., credit cards, loans, mortgages)
- Opening and closing dates of accounts
- Credit limits or loan amounts
- Payment history for the past two years
Credit Enquiries
- List of credit applications made in the last five years
- Names of credit providers you’ve applied to
- Dates of applications
Public Record Information
- Bankruptcies
- Debt agreements
- Credit defaults
- Court judgments related to credit
- Personal insolvency information
By frequently monitoring your credit score, you can stay apprised of how lenders view you. Doing so may also uncover any inaccurate data in your financial background or if you’ve been targeted by identity thieves – rectifying these issues could improve your credit ranking soon after. It’s certainly worth the effort to check it regularly.
